Gratuity liability not deductible in net wealth computation; Standard Mills governed and no larger Bench reference was needed.

Gratuity liability arising under industrial court awards, to the extent referable to employees' service up to the valuation date, was not deductible in computing net wealth under the Wealth-tax Act, 1957. The issue was governed by Standard Mills Co. Ltd. v. Commissioner of Wealth-tax, which had rejected such deduction. Metal Box Company of India Ltd. v. Their Workmen did not create a conflict because it arose under the Bonus Act and distinguished Standard Mills. On that basis, there was no ground to refer the matter to a larger Bench.

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Issues: Whether the company's liability towards gratuity under industrial court awards, in respect of employees' service up to the valuation date, was deductible while computing net wealth under the Wealth-tax Act, 1957.

Analysis: The question was governed by the earlier decision in Standard Mills Co. Ltd. v. Commissioner of Wealth-tax, which had answered the issue against deduction. The later decision in Metal Box Company of India Ltd. v. Their Workmen was held not to create any conflict, as it arose under the Bonus Act and had itself distinguished Standard Mills. On that basis, there was no justification to refer the matter to a larger Bench for reconsideration.

Conclusion: The gratuity liability was not allowed as a deduction in computing net wealth, and the appeal failed.

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